OT:RR:NC:NC:N2:206
Hyung Chan Kim
Daou Precision
105 Noksansaneopjung-ro, Gangseo-gu
Busan 46752
South Korea
RE: The country of origin of a pipe assembly.
Dear Mr. Kim:
In your letter dated February 9, 2026, you requested a country of origin ruling on a pipe assembly for
marking purposes and for purposes of applying additional duties.
The article under consideration is a pipe assembly heater (Part 21022-9BT0A), which is used in passenger
vehicles. You describe it as a circulation channel of the coolant from the radiator to the engine. It is situated
between the radiator and the engine. The pipe assembly heater consists of four pipes (pipe 11, 12, 13, and
14), a flange, and two brackets.
According to the flowcharts you supplied, the steel pipes, flange, and brackets are made in South Korea. You
state that pipe bending occurs in South Korea. The components are then sent to Mexico where the following
processes occur: spot welding of pipe 11 with pipe 14, spot welding of the welded product with one bracket,
spot welding of pipe 13 with another bracket, caulking pipe 12 with the flange, expanding and brazing the
product, adjusting the shape, leak testing, plating, and inspection.
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every
article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly,
indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to
indicate to the ultimate purchaser in the United States, the English name of the country of origin of the
article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to
know by an inspection of the marking on the imported goods the country of which the goods is the product.
The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by
knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should
influence his will.” See United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940).
Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of
manufacture, production, or growth of any article of foreign origin entering the United States. Further work
or material added to an article in another country must effect a substantial transformation in order to render
such other country the “country of origin” within the meaning of the marking laws and regulations.
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other
USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in
§§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to
goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the
country of origin of a good for marking purposes, with the exception of textile goods which are subject to the
provisions of 19 C.F.R. § 102.21. See 19 C.F.R. § 102.11.
Applied in sequential order, 19 CFR Part 102.11(a) provides that the country of origin of a good is the
country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff
classification set out in Part 102.20 and satisfies any other applicable requirements of that section, and
all other applicable requirements of these rules are satisfied.
The pipe assembly is neither "wholly obtained or produced" nor "produced exclusively from domestic
materials." Therefore, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of origin of the
pipe assembly, and paragraph (a)(3) must be applied next to determine the origin of the finished article. The
pipe assembly is classified under subheading 8708.99, Harmonized Tariff Schedule of the United States
(HTSUS). The tariff shift requirement in Part 102.20 for the pipe assembly at issue states:
A change to subheading 8708.99 from any other subheading, except from parts or accessories of the
goods of subheading 8708.40, 8708.50, 8708.80, 8708.91, 8708.92, 8708.94, or 8708.95.
The pipes are bent into specific shapes in South Korea. As a result, they will be classified in the same
subheading as the pipe assembly. Thus, the foreign components of the pipe assembly do not meet the tariff
shift. As a result, Part 102.11(a) does not apply.
Section 102.11(b) states, in relevant part:
Except for a good that is specifically described in the Harmonized System as a set, or is classified as a
set pursuant to General Rule of Interpretation [("GRI")] 3, where the country of origin cannot be
determined under paragraph (a) of this section:
The country of origin of the good is the country or countries of origin of the single material that
imparts the essential character to the good….
In determining the "essential character" of the finished good, Section 102.18(b)(1) provides, in relevant part:
(b) (1) For purposes of identifying the material that imparts the essential character to a good under
Part 102.11, the only materials that shall be taken into consideration are those domestic or foreign
materials that are classified in a tariff provision from which a change in tariff classification is not
allowed under Part 102.20 specific rule or other requirements applicable to the good … (ii) Materials
that may be considered include materials produced by the producer of the good and incorporated in
the good. For example, if a producer of a good purchases raw materials and converts those raw
materials into a component that is incorporated in the good, that component is a material that may be
considered for purposes of identifying the materials that impart the essential character to the good,
provided that the component is classified in a tariff provision from which a change in tariff
classification is not allowed under the specific rule…
The pipes are the components that are classified in a tariff provision from which a change in tariff
classification is not allowed. Accordingly, the country of origin of the pipe assembly heater (Part
21022-9BT0A) for marking purposes is South Korea.
When determining the country of origin for purposes of applying current trade remedies under Section 301
and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling
Letter H301619, dated November 6, 2018. The test for determining whether a substantial transformation will
occur is whether an article emerges from a process with a new name, character, or use different from that
possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778
(C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v.
United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
The individual components from South Korea, the pipes, flange, and brackets are complete before arriving to
Mexico. Combining the components together and plating the final product does not result in a substantial
transformation. Therefore, the country of origin of the pipe assembly heater (Part 21022-9BT0A) is South
Korea for the applicability of additional duties.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection
Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents
filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact
National Import Specialist Liana Alvarez at [email protected].
Sincerely,
(for)
James Forkan
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division